PMI's Lowering Your Down Payment

How To Buy the Home You Want

Mortgage insurance (MI) allows you to choose from a wider price range of homes. How? Lenders are generally willing to accept a lower down payment than the standard 20% if the lender obtains mortgage insurance on your loan through a mortgage insurance company.

You can not only get the home you deserve, but you can conserve your savings and increase your income tax deductions, just by putting less money down.

Buy More Home

You can afford more home and maximize your investment if your lender obtains MI for your loan.

Without MI With MI
Down Payment 20% 10% 5%
Your Available Cash $10,000 $10,000 $10,000
Maximum Home Price $50,000 $100,000 $200,000


Financing a home with a low down payment loan may be the best way to afford a home in high-priced markets.

Conserve Your Cash

The lower the down payment, the more you retain for home furnishings, other investments, future emergencies, or even college tuition.

Without MI With MI
Home Price $100,000 $100,000 $100,000
Down Payment 20% 10% 5%
Cash Down Payment $20,000 $10,000 $5,000
Savings $20,000 $20,000 $20,000
Savings Retained $0 $10,000 $15,000


Even if you have less than $20,000 saved, you can still afford to buy a $100,000 home with a lower down payment option if your lender obtains MI on your qualified loan from a mortgage insurance company.

Increase Your Tax Write-off

A larger loan amount will have higher interest payments and could result in higher tax deductions.

Mortgage interest is one of the few remaining consumer debt items that you can deduct.